BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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          |SENATE RULES COMMITTEE            |                   SB 739|
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                              UNFINISHED BUSINESS


          Bill No:  SB 739
          Author:   Peace (D)
          Amended:  7/16/01
          Vote:     27 - Urgency

           
          Prior Senate votes note relevant

           ASSEMBLY FLOOR  :  54-26, 7/16/01 - See last page for vote


           SUBJECT  :    State Budget Act of 2000-01

           SOURCE  :     Author


           DIGEST  :     Assembly amendments  delete the prior version.   
          As it left the Senate, this bill, authored by Senate Budget  
          and Fiscal Review Committee, was intended to be a possible  
          Trailer bill relative to administration of state  
          government.

          This bill contains the contents of SB 75 (Peace), the  
          2000-01 State Budget Bill with various changes, as  
          specified in the Analysis section below.

           ANALYSIS  :

           Budget Process Overview

           With the submission of the Governor's Budget, which is  
          required by January 10 of each year, the chair of the  
          Senate Budget and Fiscal Review and Assembly Budget  
          Committees each introduce a Budget Bill which contains  
                                                           CONTINUED





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          appropriations to finance the program levels proposed in  
          the Governor's Budget.  Throughout the spring, and with the  
          assistance of committee consultants and the Legislative  
          Analyst, who prepares a detailed analysis of the Governor's  
          Budget, the fiscal committees of each House of the  
          Legislature hold hearings to determine if changes should be  
          made in the Governor's Budget.  At these hearings,  
          representatives from the state department whose Budget is  
          being heard, the Department of Finance, the Legislative  
          Analyst, and the public may be called upon to provide  
          official testimony.

          Changes desired by the Administration concerning events  
          occurring after the Governor's Budget is submitted are  
          included in "Finance Letters" addressed to and considered  
          by the Senate and Assembly Budget committees.

          In mid-May, the Department of Finance updates its estimates  
          of current year, and budget year revenues, expenditures  
          (including any final Administration expenditure proposals)  
          and surplus.  This provides the Legislature with the most  
          current estimate of resources that will be available for  
          expenditure.

          At the completion of all the hearings, each House passes  
          its Budget Bill, a Conference Committee of six legislators  
          is chosen to receive differences in the two bills and to  
          incorporate a "Conference Committee Version" into one of  
          the bills.  The bill is then sent to the floor of each  
          House and, if passed by two-thirds, is enrolled to the  
          Governor.  If it is not passed, a new Conference Committee  
          is formed and the conference process is repeated.  Some  
          times it has become necessary for the Senate Pro Tem,  
          Assembly Speaker, Senate Minority Leader, Assembly Minority  
          Leader, and the Governor to meet to resolve major issues.   
          The Legislature is required under the State Constitution to  
          pass the Budget by June 15th of each year.

          Upon receipt of the Budget Bill, the Governor meets with  
          his advisors to make reductions or eliminate particular  
          items of expenditure (known as the item-veto).  The  
          Governor then signs the Budget Bill, and it becomes the  
          Budget Act.  Under the State Constitution, the Governor  
          must sign the Budget by June 30th of each year.  The  







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          Legislature may then consider overriding any vetoes the  
          Governor has made and may do so by a two-thirds vote of  
          each House. 

          This bill is the $101.1 billion State Budget for 2000-01  
          which was contained in SB 75 with the following additional  
          amendments specified below:

          1. Augments the Budget Act by $27.3 million, including  
             $19.3 million (General Fund) and $8 million (Public  
             Transportation Account), for Agricultural and Rural  
             Relief Rebates of sales tax paid for farm and forestry  
             equipment and machinery ($ 13 million), diesel fuel used  
             in agriculture ($8 million), liquefied petroleum gas for  
             residential use ($5.5 million), and thoroughbred  
             breeding stock ($800,000).

          2. Augments the Budget by $8 million for Klamath River  
             Crisis Economic Assistance and Mitigation activities.

          3. Augments the Budget by $5 million for the "Buy  
             California" program.

          4. Augments the Budget by $33.35 million for additional law  
             enforcement activities, including a $10 million  
             augmentation (total of $30 million) for local law  
             enforcement grants and control language providing a  
             minimum grant to the sheriff departments of rural and  
             small counties to supplement and not supplant current  
             law enforcement activities, and $5.35 million for  
             additional augmentations to specified police  
             departments.

          5. Adds provisions to the Budget to reimburse the full  
             costs incurred by the County of Shasta for the homicide  
             trial of the  People v. Williams and Williams  , the County  
             of San Luis Obispo for the homicide trial of the People  
             v. Krebs  , and the County of Placer for the homicide  
             trial of the  People v. Juarez Suarez  .

          6. Augments the Budget by $5 million (State Highway  
             Account) for the City of Shafter for the Southern San  
             Joaquin Valley Intermodal Facility.








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          7. Augments the Budget by $300,000 to reimburse school  
             districts for costs incurred from snow removal  
             activities

          8. Augments the Budget by $50,000 for the California  
             Postsecondary Education Commission to conduct a study of  
             higher educational needs of students in Superior  
             California.

          9. Augments the Budget Act by $3.24 million for various  
             local projects.

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No

          Provides for a $101.1 billion State Budget.

           ASSEMBLY FLOOR  :
          AYES:  Alquist, Aroner, Briggs, Calderon, Canciamilla,  
            Cardenas, Cardoza, Cedillo, Chan, Chavez, Chu, Cohn,  
            Corbett, Correa, Diaz, Dickerson, Dutra, Firebaugh,  
            Florez, Frommer, Goldberg, Havice, Horton, Jackson,  
            Keeley, Kehoe, Kelley, Koretz, Liu, Longville, Lowenthal,  
            Matthews, Migden, Nakano, Nation, Negrete McLeod,  
            Oropeza, Papan, Pavley, Pescetti, Reyes, Salinas,  
            Shelley, Simitian, Steinberg, Strom-Martin, Thomson,  
            Vargas, Washington, Wayne, Wesson, Wiggins, Wright,  
            Hertzberg
          NOES:  Aanestad, Ashburn, Bates, Bogh, Bill Campbell, John  
            Campbell, Cogdill, Cox, Daucher, Harman, Hollingsworth,  
            La Suer, Leach, Leonard, Leslie, Maddox, Maldonado,  
            Mountjoy, Robert Pacheco, Rod Pacheco, Richman, Runner,  
            Strickland, Wyland, Wyman, Zettel


          DLW:sl  7/17/01   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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